Dangote Refinery Resumes Free Petrol Delivery, Offers New Price to Buyers
- Dangote Refinery has announced plans to resume free petrol delivery to retail outlets nationwide
- The mega refinery is offering the product at N699 per litre to marketers and independent users, lower than what most depots sell
- The move marks a renewed push by the refinery to deepen its presence in the downstream market and ease persistent supply
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dangote Petroleum Refinery has announced the resumption of its free direct delivery of Premium Motor Spirit to retail outlets across Nigeria, offering a new gantry price of ₦699 per litre.
The move marks a renewed push by the refinery to deepen its presence in the downstream market and ease persistent supply and pricing pressures in the fuel retail segment.
Source: Twitter
The refinery said the initiative will see petrol delivered directly to registered filling stations nationwide at no additional logistics cost, a development expected to significantly reduce distribution bottlenecks and lower operating expenses for marketers.
New pricing signals competitive shift
The ₦699 per litre gantry price represents a more competitive offering in a market still adjusting to deregulation and volatile import-linked pricing.
By combining lower pricing with free delivery, Dangote Refinery is positioning itself as a major stabilising force in Nigeria’s fuel supply chain, particularly as marketers grapple with transport costs, exchange rate pressures and uneven supply patterns.
Industry watchers say the move could influence pump prices over time, especially in major urban centres where logistics costs often account for a significant portion of retail pricing..
"There is a fierce battle in the downstream sector and Dangote seems to have the upper hand through his petrol price slashes," energy policy analyst, Adeola Yusuf said during a call with Legit.ng
"We are seeing the interplay of dominance and deregulation as marketers battle to match the refinery's pricing regime," he said.
Registration opens for petrol station owners
According to the refinery, petrol station owners and dealers interested in benefiting from the programme are required to register their outlets ahead of the rollout.
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The registration process is designed to create a structured and transparent supply framework, allowing the refinery to plan deliveries efficiently and ensure consistent product availability.
The company noted that the direct supply model will reduce dependence on multiple intermediaries, helping to shorten delivery timelines and limit disruptions that often arise from third-party haulage arrangements.
Incentives designed to support marketers
Beyond pricing and logistics, Dangote Refinery is offering additional incentives aimed at easing cash flow constraints faced by fuel retailers.
Registered dealers will have access to a 10-day credit facility, backed by a bank guarantee, providing short-term financing support for bulk purchases.
The programme also comes with a minimum order requirement of 500,000 litres, a threshold that underscores the refinery’s focus on medium to large-scale operators capable of maintaining steady retail volumes.
While smaller marketers may face challenges meeting the requirement, the facility is expected to strengthen supply consistency among participating outlets.
Implications for Nigeria’s downstream market
The resumption of free petrol delivery highlights Dangote Refinery’s broader strategy to improve efficiency and stability in Nigeria’s downstream petroleum sector.
By reducing logistics costs and offering structured credit, the refinery is addressing some of the long-standing issues that have historically driven price volatility and supply gaps.
Analysts believe the initiative could intensify competition among suppliers, putting pressure on import-dependent operators and potentially encouraging more transparent pricing across the market.
Strengthening local refining impact
As Africa’s largest single-train refinery, Dangote Petroleum Refinery has continued to expand its operational footprint since commencing fuel production.
The latest move reinforces its role in reducing Nigeria’s reliance on imported petroleum products while supporting local distribution networks.
Source: Getty Images
With free delivery, competitive pricing and credit incentives combined, the refinery’s latest offer is expected to reshape fuel distribution dynamics and provide some relief to retailers navigating a challenging operating environment.
IPMAN backs Dangote Refinery's price slash
Legit,ng earlier reported that Petrol marketers across Nigeria are adjusting pump prices following a fresh pricing framework announced by the Dangote Petroleum Refinery, a move strongly backed by the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The association says the development will stabilise supply, curb scarcity fears and ease pressure on consumers over time.
IPMAN disclosed that it has reached a landmark agreement with the Dangote Refinery to supply Premium Motor Spirit (PMS), also known as petrol, directly to its registered members nationwide.
Source: Legit.ng
